Naira Falls Against Pound After Conservatives Sweep UK Election
By Adedapo Adesanya
The result of the United Kingdom general election that saw Mr Boris Johnson return as Prime Minister and the Conservative Party dominate the House of Parliament drove the Naira/Pound exchange rate as high as N480 on Friday at the parallel market.
But later in the afternoon, the rate moderated to N476 against the British currency at the black and closed at the same rate when market activities were wrapped up in the evening.
Also, at the same market window, the Naira extended its fall against the US Dollar, depreciating during the session by N1 to close at N363 per Dollar against N362/$1 it traded on Thursday.
In addition, the local currency printed a poor performance against the Euro at the black market on Friday, going down by N1 against the European currency to close at N398/€1 compared with N397/€1 at the previous session.
At the Investors and Exporters (I&E) segment of the foreign exchange (forex) market, the Nigerian currency also posted a weak performance, depreciating during the day by 14 Kobo or 0.04 percent to exchange at N363.49 per Dollar in contrast to N363.35/$1 it exchanged at Thursday’s session.
At the session, the value of transactions at the window depleted by 63.5 percent or $311.23 million to $179.31 million from the $490.54 million exchanged the previous day.
However, at the interbank segment of the market, which is the official window of the Central Bank of Nigeria (CBN), the local currency traded flat against the American currency, closing at N306.90/$1.